STAND. COM. REP. NO. 1965

Honolulu, Hawaii

, 2019

RE: S.B. No. 823

S.D. 1

H.D. 2

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirtieth State Legislature

Regular Session of 2019

State of Hawaii

Sir:

Your Committee on Finance, to which was referred S.B. No. 823, S.D. 1, H.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO MOTOR VEHICLE REPAIRS,"

begs leave to report as follows:

The purpose of this measure is to provide consumers the opportunity to make better decisions when purchasing motor vehicle insurance by requiring insurers to clearly give consumers notice, at the time the insurer offers new or renewal motor vehicle policy coverage, of the choice to use an aftermarket part (or a like kind and quality part of equal or better quality than the original equipment manufacturer part), if available, or an original equipment manufacturer part for motor vehicle body repair work.

The Mascot Corporation, Kraftsman Auto Body, and a few concerned individuals supported this measure. The LKQ Corporation, GEICO, and National Association of Mutual Insurance Companies opposed this measure. The Department of Commerce and Consumer Affairs, Automotive Body and Painting Association of Hawaii, American Property Casualty Insurance Association, State Farm Mutual Automobile Insurance Company, Hawaii Insurers Council, and a few concerned individuals commented on this measure.

As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 823, S.D. 1, H.D. 2, and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Finance,

____________________________

SYLVIA LUKE, Chair